Nano Nuclear Energy (NASDAQ:NNE) said it continues to advance its Kronos micro modular reactor program, highlighting a recent construction permit application tied to a planned deployment at the University of Illinois Urbana-Champaign, a strong cash position and expanding commercial discussions across data centers, international markets and the nuclear fuel cycle.
Founder, Chairman and President Jay Jiang Yu said the company remains focused on vertical integration across key parts of the nuclear fuel cycle while advancing Kronos toward construction, licensing and commercialization. He described Kronos as a high-temperature gas-cooled reactor design supported by prior development work and operating history for similar reactor technologies.
University of Illinois Project Moves Through NRC Process
Chief Executive Officer James Walker said the construction permit application for the company’s first full-scale Kronos MMR prototype represented a transition from engineering design toward construction planning at the University of Illinois campus.
Walker said Nano Nuclear expects an approximately 12-month review period after formal acceptance of the application. In response to an analyst question, he said formal acceptance was expected “imminently,” while noting that the company could not speak for the NRC. If accepted and reviewed on the expected timeline, the company said initial construction activities could begin in mid-to-late 2027.
Walker said the company’s technical team has shifted its attention to supply chain work after completing the permit application. That includes discussions around reactor vessels, graphite, fuel fabrication, helium circulators and non-nuclear components such as turbine systems and mechanical systems.
Asked about cost estimates for the University of Illinois project, Walker said the company’s prior estimate of $300 million to $350 million for the first-of-a-kind full-scale reactor system remained accurate based on current discussions. He cautioned that the figure would not represent the cost of later “Nth-of-a-kind” units, because the initial reactor includes bespoke elements.
Data Center Opportunity Advances After Feasibility Study
The company also discussed its previously announced work with BaRupOn on a feasibility study evaluating up to 1 gigawatt of power generation using the Kronos MMR platform for an AI data center and manufacturing campus in Texas.
Yu said the feasibility study confirmed that Kronos could be designed to reach BaRupOn’s desired 1 GW power needs in stages over time. Walker said the parties are now discussing the next phase, including licensing requirements and site-specific work such as drilling and geotechnical studies that would support a construction permit application for the site.
Walker said the University of Illinois deployment is expected to produce a licensed commercial reactor product that could then be used in future deployments, while individual sites would still require their own licensing and site approval processes. He said future applications could potentially benefit from a more efficient review once the reactor is a known quantity with the NRC.
In response to a question about BaRupOn’s tenant pipeline, Walker said BaRupOn was in due diligence with two major hyperscalers. He added that BaRupOn has other potential sites beyond Texas and said Nano Nuclear is “earmarked” to provide nuclear power for those potential developments as well.
Partnerships Target AI, Gulf Region and South Korea
Executives highlighted several recent memorandums of understanding intended to support commercialization and deployment opportunities.
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Supermicro: Walker said the company’s MOU with Supermicro focuses on exploring the integration of Kronos with AI server and data center platforms, joint go-to-market strategies and off-grid deployment opportunities for AI infrastructure.
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EHC Investment: Walker said the Abu Dhabi-based investment holding company could support a potential joint venture in the Gulf region, including market entry evaluation, localized supply chain development, host site identification and stakeholder engagement.
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DS Dansuk: Yu said the collaboration is aimed at supporting deployment and localization efforts in South Korea, including the potential development of reactor core manufacturing and component production capabilities.
Yu said the company is also advancing discussions around M&A and partnerships tied to the nuclear fuel supply chain, including nuclear fuel transportation and fuel supply chain facilities. Walker said the company is in late-stage discussions regarding transportation-related capabilities, describing transportation of nuclear materials and fuel as a potential bottleneck for broader industry deployment.
Regulatory Developments Seen as Commercially Important
Walker said proposed and emerging NRC licensing pathways, including Part 53 and Part 57, could be important for the broader advanced nuclear industry. He said Part 57 is particularly relevant for microreactors because it is focused on fleet deployment and could support the commercialization of standardized reactor systems at scale.
However, Walker said Nano Nuclear does not expect those newer pathways to materially change the University of Illinois project because the company was already far along under its existing Part 50 process. He said the commercial benefit would be more meaningful for future deployment of multiple reactor systems.
Cash Position Remains Strong as Net Loss Widens Sequentially
In its financial update, the company said it ended the quarter with approximately $569 million in cash equivalents and short-term investments, down slightly from the prior quarter as it continued funding Kronos development and related fuel cycle initiatives.
The company said its previously filed $900 million shelf registration statement became effective during the quarter, including a $400 million at-the-market facility. Management said it has not used the shelf or ATM and does not view them as reflecting immediate financing needs, but said they provide flexibility to access capital opportunistically.
Second-quarter net loss totaled $9.2 million, up about $3 million from the prior quarter. The company said the increase primarily reflected higher headcount and related expenses as it advanced Kronos development and licensing, while also pursuing strategic growth opportunities. Compared with the prior-year period, net loss declined by about $12 million, which the company attributed primarily to higher interest income and lower equity-based compensation.
Management said expenses are expected to trend higher as Nano Nuclear scales its team and begins procurement of long-lead items and testing equipment tied to its engineering and demonstration facility.
About Nano Nuclear Energy (NASDAQ:NNE)
NANO Nuclear Energy, Inc is a microreactor and nuclear technology company, which provides supply energy services. Its products in technical development are ZEUS, a solid core battery reactor, and ODIN, a low-pressure coolant reactor. The company is founded by Jiang Yu in February, 2022 and is headquartered in New York, NY.
